Healthcare stocks tumbled on Monday after the death of Justice Ruth Bader Ginsburg sparked concerns that the Supreme Court may dismantle Obamacare and roil the health insurance industry.
Senate Republicans and the Trump administration have already set out to fill Ginsburg's court seat ahead of the US presidential election in November. Should their efforts succeed, a strong conservative majority in the nation's highest court is more likely to gut the Affordable Care Act.
More than 20 million Americans depend on the ACA for their health insurance. A reversal of the law would all but certainly lower revenue across insurers, hospitals, and other healthcare companies. A final decision on the Obamacare challenge is expected in the first half of 2021.
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